The non-profit organization wants to ensure that the direct costs of the federal grant in applying the de minimis rate do not already include coverage of indirect costs (double-fee). This type of problem is most common when the federal non-profit subsidy supports a large majority, if not all, of non-profit activities. But it could also happen if, in the past, the non-profit organization has recovered the indirect costs of federal grants through direct endowments. The not-for-profit organization must also be consistent in how direct and indirect costs are charged on federal grants. Internal Controls When faculty members from more than one department participate in a project, pi and the IP management department have created accounts. Faculty members are asked to determine how indirect costs will be used to support the project prior to the submission of the proposal. The TDC is when indirect costs are charged at all costs – no exclusion or exception. Example TDC Budget-Salem State University (WSSU) receives reimbursement of facilities and administrative costs related to grants and contracts and will allocate these funds in accordance with all applicable federal and regional guidelines, federal and regional laws and university of North Carolina guidelines, on how to modify them from time to time. The Chancellor will only use research and development funds to support the scientific development of her faculties, staff and students, or to ensure that campus infrastructure is supported to improve these scientific activities.
Expanding your horizons If your experience is primarily based on some form of organization, you may not realize how much indirect cost rates vary from company to company, or you understand the underlying principles that govern these differences. If the proponent limits or prohibits the full recovery of research and development costs, the lead investigator must make a statement of limitation to the proponent when submitting the internal audit and approval proposal. This statement may be a copy of the directive in force on the promoter`s website, a request for proposal, grant guidelines or other documents, or a written statement that will be received directly by the promoter if no further statement of its policy is available. If the sponsor authorizes the collection of the RA fee but does not give a price, the lead investigator must contact the Office of Sponsored Programs to determine the applicable price.